Teens struggle with money

“On average, high school seniors answered correctly only 52.4 percent of questions about personal finance and economics, according to a nationwide survey released Wednesday.”

This should be no surprise to anyone. However it should alarm everyone. Kids in high school have more classes about art, physical education, and home economics then they do about real financial economics.

Many school curriculums have roots base in the 1940’s. Times have changed and educating teenagers on finances in needs reform. Education on debt should be a high priority. Let’s not let our kids fall in to the same credit pit falls we have faced in the last 20 years with the ballooning credit card debt.

We also need to address the old myth of save your money. With the average savings account paying less than 1% interest, it can’t keep pace with inflation. Kids need a real education on the new economics of our time.

The study also breaks down along racial and social economic lines.

For instance, 12th-graders from families with incomes greater than $80,000 a year scored an average of 55.6 percent, while students from families at the lowest rung — less than $20,000 a year — had a score of 48.5 percent.

By race, white students scored an average of 55 percent. Blacks and Hispanics scored 44.7 percent and 46.8 percent respectively. Asians scored an average 49.4 percent.